Arizona state taxes 2021: Income and sales tax rates
Arizona businesses and residents must pay state income taxes. Arizona uses a graduated-rate income tax, meaning the rate you pay depends on how much money you make.
Our guide will help you determine which tax bracket you fit into, who needs to file Arizona taxes, and a breakdown of the state’s sales tax rates.
Arizona personal income tax rates: Table
Arizona has four tax brackets for filers.
| Arizona tax rates for single filers and married filing separately | |||
|---|---|---|---|
| Tax rate | Taxable income bracket | Taxes owed | |
| 2.59% | $0-$27,272 | 2.59% of taxable income | |
| 3.34% | $27,273-$54,544 | 3.34% of the amount above $27,272, minus $205 | |
| 4.17% | $54,545-$163,632 | 4.17% of the amount above $54,544, minus $657 | |
| 4.50% | $163,633+ | 4.50% of the amount above $163,632, minus $1,197 | |
| Arizona tax rates for married filing jointly or head of household | |||
|---|---|---|---|
| Tax rate | Taxable income bracket | Taxes owed | |
| 2.59% | $0-$54544 | 2.59% of taxable income | |
| 3.34% | $54,545-$109,088 | 3.34% of the amount above $54,544, minus $409 | |
| 4.17% | $109,089-$327,263 | 4.17% of the amount above $109,088, minus $1,315 | |
| 4.50% | $327,264+ | 4.50% of the amount above $327,263, minus $2,394 | |
Source: Arizona Department of Revenue
Arizona’s standard deduction is $12,550 for single taxpayers. Married filers (filing jointly) receive a $25,100 deduction. The state doesn’t have personal exemptions, though you can receive a tax credit of $100 for each qualifying dependent.
Who has to file Arizona state taxes?
Residents living in Arizona for the whole year or for part of the year must file taxes if their gross income is more than $12,400, more than $18,550 for the head of household or more than $24,800 for married couples filing jointly. The Arizona Department of Revenue can help you determine if you need to file taxes, and their website allows you to file quickly and pay any balances due.
Companies establishing residence in Arizona must also file and pay state income taxes. The top corporate tax rate is 4.9 percent.
Arizona sales tax rate: Table
When making qualifying purchases in Arizona, here is the sales tax you’ll pay.
| Arizona sales tax rate | |||
|---|---|---|---|
| Sales tax rate | National rank | ||
| 5.6% | 28 | ||
Source: Tax Foundation
Arizona has a combined sales tax. The state charges 5.6 percent, and localities impose a 2.8 percent rate. Arizona does not have sales tax holidays on specific goods as some other states have.
Other things to know about Arizona state taxes
For special items, you will pay a specific tax for them. The gasoline tax in Arizona is 19 cents per gallon. Meanwhile, the cigarette tax is $2 (dollars per 20-pack).
Residents and businesses alike can take advantage of state tax credits to offset or lower their liabilities. The Arizona Department of Revenue contains all the information you need on tax credits, filing Arizona taxes and receiving a refund.
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